CRM, an acronym for Customer Relationship Management, is a term that refers to the processes and strategies that a company puts in place to manage its relationships with customers, as well as the tools and systems it uses to maintain its user base. and drive sales.
What is a CRM?
CRM, acronym in English for “Customer Relationship Management”, in its technological meaning refers to the software that records the information of all the people involved in the company’s processes, whether they are customers, users, employees or suppliers. . CRM systems facilitate the treatment of data obtained through different sources that will serve as the basis for correct decision-making.
Another definition is related to the CRM strategy: it encompasses the set of actions and processes that a business establishes with the objective of attracting prospects and the satisfaction of portfolio customers.
What is a CRM for (Infographic)
At the most basic level, CRM software consolidates customer information and documents into a single database. Thus, users will be able to access and manage it more easily.
Over time, many additional features have been added to make them more useful. Some of these features include recording customer interactions via email, phone, social media or other channels; workflow automation such as tasks, calendars, and alerts; o Provide administrators with performance and productivity tracking based on information recorded in the system.
In the following Infographic we tell you in a simple way our definition of CRM and what it is for
Benefits of a CRM
Once we are clear about what a CRM is , we are going to see its benefits:
- Marketing Automation – CRM tools can perform repetitive tasks to improve the work of the marketing department.
- Sales Force Automation – CRM keeps track of customer interactions. It also automates certain business functions of the sales cycle that are necessary to track leads.
- Contact Center Automation : in order to reduce the duration of calls and simplify customer service processes.
- Geolocation Technology or Location-Based Services – Some CRM systems include technology that can create geotargeted marketing campaigns and track sales in a given location.
- Workflow Automation – CRM systems help businesses streamline processes by taking care of the simplest functions. This allows employees to focus on higher-level, productive tasks.
- Lead Management – Leads can be tracked through a CRM. Salespeople can track and analyze lead data on one screen.
- Human resource management in a CRM : CRM systems help keep track of employee information, allowing the human resources department to more effectively manage the company’s staff.
- Analytics – Analyzing data and creating effective marketing campaigns raise customer satisfaction rates.
- Artificial Intelligence – Artificial intelligence technologies have been incorporated into CRM platforms by identifying customer buying patterns to predict future behavior.
What is an Operational, Analytical and Collaborative CRM?
- If we look at its functionalities and objectives, we can say that there are three types of CRM on the market. Before implementing one in your company, it is worth knowing what they offer and how they are different.
- What are the three types of CRM? Operational, Analytical and Collaborative.
Operational CRM
- Operational CRM streamlines company procedures through sales, marketing, and service automation. The main goal is to generate leads, convert them into contacts, record all the necessary details, and provide service throughout the customer lifecycle.
Analytical CRM
- An analytical CRM collaborates with managers, marketing, sales and support establishing the best way to serve customers. The main function of this type of CRM is data analysis. Analyze customer data from different sources to get a reliable picture of the state of the business. It enables management to make better decisions, marketing to understand the effectiveness of campaigns, sales to increase profits, and support staff to improve customer service and build a strong relationship with the customer.
Collaborative CRM
- Collaborative CRM shares customer information with various areas of the company such as the sales, marketing, technical and support departments. The CRM compiles the work of the different business units to achieve an objective: use all the information to improve the quality of customer service, build loyalty and attract new customers to increase sales.
What does Local CRM and Cloud CRM mean?
If we look at the way of installation, we find that CRM systems are installed locally or in the cloud. Although until recently installations were mostly carried out on company servers, in recent years the almost unanimous trend is to hire cloud services.
What is a local CRM?
- This system leaves the control of the administration, security, maintenance of the database and information, in the hands of the user who uses the software. A lifetime license is purchased instead of paying annual or monthly subscriptions to a CRM provider. The solution is installed on the company’s own servers and the company assumes the cost of any update. Integration with other programs is often complex. A CRM installed locally is a recommended option for companies with very specific needs.
What is a cloud-based CRM?
- In a cloud-based CRM, also known as SaaS (software as a service), information is stored on a remote, external network that employees can access anytime, anywhere with an Internet connection. It does not entail implementation or maintenance costs. There is also no initial outlay to make as in the case of local installation. Data security is a critical concern for businesses using cloud-based systems, since they do not physically control their storage.
What is an Open Source CRM? And a Private CRM?
A proprietary CRM is one that presents any type of technological or legal restriction that prevents its modification or distribution without the prior authorization of its owner . The source code is owned by a company in charge of exploiting it for commercial purposes. Some examples are: Sap CRM, Salesforce, SumaCRM, etc.
An Open Source CRM system makes the source code available to users , allowing them to make changes at no cost to the company using the system. Open source systems also allow adding and customizing data logging on social media channels. Open source platforms like OroCRM, SuiteCRM or SugarCRM are good alternatives to paid solutions.
Adoption of any of these deployment methods depends on business needs, resources, and goals, as each has different associated costs.
In our blog, you can read several in-depth analyzes of the most used systems today :
- CRM solutions in the cloud
- CRM’s used in the real estate sector
Examples of use of a CRM
We tell you some examples of CRM in practice so that you better understand what a CRM is .
Contact Center
Traditionally, data entry in a CRM system has been the responsibility of sales and marketing departments, as well as call center agents. Sales and marketing teams collect leads and update the system with customer information. For their part, customer service centers collect data and review customer history records through calls received by the service and technical support interactions.
Social CRM
Another example is found in social networks. They create business opportunities through platforms like Facebook, Twitter and LinkedIn. Social networks represent an open forum for customers to share experiences with a brand, whether it be issuing complaints or promoting products.
To add value to customer interactions, companies use various Social CRM tools . They monitor conversations on social networks, from specific mentions of a brand to the keywords used, and thus determine their target audience and the social platforms they use.
Companies are interested in capturing customer sentiment, such as how likely they are to recommend products and overall satisfaction, to develop marketing and service strategies. Companies try to cross the data obtained through Social CRM with others collected by the sales or marketing departments to obtain a single vision of the client.
Mobile CRM Systems
Applications created for smartphones and tablets have become a necessity for business and marketing professionals. They allow them to access customer information and perform tasks when they are not physically in their offices. Mobile CRM applications take advantage of features unique to mobile devices, such as GPS and voice recognition capabilities, to give sales and marketing employees access to customer information from anywhere.
If you want to know success stories of well-known companies that implemented customer relationship management systems, you cannot miss what is told in this link .
CRM challenges
Any advance in CRM technology is useless if it is only used as a database. The data obtained must be connected, distributed and organized so that users can easily access the information they need.
Companies will not have a complete picture of the customer if the information is not organized in a single interface. Challenges also arise when systems contain duplicate customers or outdated information. These issues can lead to a reduced quality of customer experience due to long wait times during phone calls, inadequate case management through help desk, etc.
Do you have any questions about what a CRM is? Do you use any at work? Tell us in the comments.
